​Long-term care is a very real threat for many retirees. Driven largely by the rise of Alzheimer’s and other cognitive conditions, long-term care is a likely outcome for most seniors. The U.S. Department of Health and Human Services estimates that 70 percent of today’s 65-year-olds will need long-term care at some point in their lives.1
 
The threat of long-term care may loom even larger for women, though. Much of the risk stems from the fact that women are likely to live longer in retirement than men. The Society of Actuaries estimates that a 65-year-old woman has a 50 percent chance of living to age 90 and a 25 percent chance of living to 96. A 65-year-old man, on the other hand, has the same odds of living to 87 and 92, respectively.2
 
A longer life span is always a good thing. However, it can bring certain challenges. One is that a longer life span means more years in retirement. Those years may need to be funded with distributions from your savings, which means you’ll need to make your savings last over a longer period of time. You could face financial difficulties in the later years.

A longer life span could also mean you’ll face more serious health challenges. As you age, you may be more likely to suffer cognitive issues, cancer, heart disease or a wide range of other issues.
 
Longevity can also influence your long-term care needs. Below are a few long-term care challenges that are specific to women. If you don’t have a long-term care strategy, now may be the time to develop one. A financial professional can help you examine your risk and create a plan.

Women are more likely to live alone in retirement.
 
It naturally follows that since most women outlive men, women are also more likely than men to live alone in retirement. Recent studies by Pew Research show that 32 percent of all women over the age of 65 live alone. While that’s down from a high of 38 percent, it’s still much higher than the 18 percent of men in that age group who live alone.3
 
Living alone can have a big impact on long-term care. Married couples are able to rely on each other for the early stages of care. That can delay the need to hire an in-home aide or even move into a facility.

A single or widowed retiree may not have that option. If you need help with mobility, meal preparation or even household chores, you may need to hire someone to do it. If you get to the point where you need assistance regularly, you may have no choice but to consider a facility.

Women need care longer than men.
 
Another natural result of longevity is the need for more care. The U.S. Department of Health and Human Services estimates that the average woman will need long-term care for 3.7 years, while the average man will need care for 2.2 years.1
 
According to a study by Genworth, the average monthly cost in 2018 for a full-time home health aide or a room in an assisted living facility was $4,000.4 That means the extra 1.5 years on average spent in long-term care could cost a woman an additional $72,000 over her male counterpart’s costs.
 
It’s important to note that Medicare often doesn’t cover this care. It may cover portions that are related to skilled nursing care and medical treatment, but even that coverage is usually partial and temporary. You may want to consider a long-term care insurance policy to fund the portion of care that isn’t covered by Medicare.

Women are more likely to care for others.
 
Even if you don’t need care in retirement, you may be called on to care for others. According to the Family Caregiver Alliance, 66 percent of all caregivers are female, and these caregivers provide 50 percent more care in terms of hours than their male counterparts.5
 
This care can have an impact on your finances and your health. Women are more likely than men to work fewer hours, pass up a promotion and even retire early because of caregiving. A female caregiver is also more likely to suffer from heart disease and cognitive issues and to skip regular wellness checkups and exams.5
 
It’s important not only for you to have a long-term care strategy, but also for your spouse to have one. If he doesn’t, you may become his long-term care provider by default. That could have a sizable impact on your retirement and your future health.

Ready to plan your long-term care strategy? Let’s talk about it. Contact us today at Senior Care Alliance. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
2https://www.fidelity.com/viewpoints/retirement/longevity
3http://www.pewsocialtrends.org/2016/02/18/smaller-share-of-women-ages-65-and-older-are-living-alone/
4https://www.genworth.com/aging-and-you/finances/cost-of-care.html
5https://www.caregiver.org/women-and-caregiving-facts-and-figures
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18148 - 2018/10/17

​

​Social Security recently announced good news for retirees. In 2019, benefits will increase 2.8 percent. That’s the largest cost-of-living adjustment (COLA) in more than a decade. Last year benefits increased only 2 percent, and they didn’t increase at all in 2010, 2011 or 2016.1
 
Cost-of-living adjustments are meant to help retirees cope with inflation. Inflation is a natural part of the economy. As the economy expands, costs for labor, materials and other resources tend to increase. That drives up prices for a wide range of goods and services. While inflation isn’t necessarily a bad thing, it can be dangerous for seniors on fixed incomes.
 
That’s where COLA comes in. Social Security offers COLAs to help seniors keep up with inflation and maintain their standard of living. The cost-of-living adjustments are based on a broad version of the consumer price index (CPI). However, there’s been debate about whether Social Security’s formula is actually appropriate.

Why COLA May Not Be Accurate for Retirees
 
There are a couple of reasons why you shouldn’t count on a COLA to help you keep up with inflation. First is the way in which COLA is calculated. Social Security uses the CPI-W as an inflation index. The CPI-W is based on expenses for urban workers.
 
Retirees have different expenses than workers, though. Many retirees spend much more of their income on health care than the average worker does. They also may face increased costs for housing, especially if they’re staying in an assisted living facility. The CPI-W doesn’t account for this increased spending on health care and housing, so the inflation rate may not be appropriate for retirees.
 
Also, Social Security probably doesn’t cover all your retirement spending. After next year’s increase, the average Social Security benefit will be $1,461 per month.2 While that’s a helpful amount, it’s probably not enough to fund your entire retirement. That means you’ll also need to increase your other income streams to fully keep up with inflation.

Tips to Plan for Inflation
 
There are a number of strategies you can implement to increase your income and keep pace with inflation. One is to stick with a long-term plan and remember that you’ll need growth to fund a long retirement. Work with your financial professional to develop a strategy that minimizes risk but also allows for growth to increase your income.
 
You could also use annuities, which are effective tools for creating guaranteed* lifetime income streams. Some offer inflation protection so your income increases each year. Others, like variable annuities, allow you to grow your assets and lock in gains, and then take guaranteed* income for life.
 
A long-term care insurance policy with an inflation rider could also be helpful. The costs of long-term care are rising every year. An insurance policy with an inflation rider will increase your benefit so it keeps pace with rising costs. When you need long-term care, the insurer will pay some or all of the expense.

Ready to develop your retirement inflation strategy? Let’s talk about it. Contact us at Senior Care Alliance today. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/cola/
2https://www.fool.com/retirement/2018/10/16/heres-the-average-social-security-benefit-for-2019.aspx
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18149 - 2018/10/17

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​If you’re behind on your retirement planning, you’re not alone. A recent study from Gallup found that more than half of Americans worry that they won’t have enough money in retirement.1 Think you can overcome your savings gap by working into your late 60s or even your 70s? You’re not alone in that strategy either.
 
According to a Bankrate study, 70 percent of workers want to continue working as long as possible. More than 40 percent of those respondents said they’ll have to keep working because they will need the money.2
 
Working late into life may seem like a reasonable and prudent idea. After all, if you’re working, you’ll have regular income and can continue contributing to your retirement accounts. You also eliminate years of retirement spending that may drain your savings.
 
Unfortunately, a strategy to work late into retirement age may not be as reliable as you might think. Below are a few reasons why you may want to rethink your plans to work into your 60s or even 70s. While working longer may be a good idea, it may also be wise to have a backup strategy.

Disability
 
The Council for Disability Awareness estimates that the average adult has a 25 percent likelihood of becoming disabled.3 However, the risk may rise with age. The Centers for Disease Control and Prevention says 60 percent of all adults age 65 and older suffer some kind of limitation on at least one basic living activity.4
 
Disability can always have a substantial financial impact, but it can be even more devastating for older workers. If you’re unable to work, you’ll lose out on income and retirement contributions. You’ll also need to take money from your savings to fund your lifestyle and pay for your care.

Long-Term Care
 
According to the U.S. Department of Health and Human Services, 70 percent of all 65-year-olds will need long-term care at some point in their lives.5 Obviously, if your health has deteriorated to the point that you need long-term care, you won’t be able to work.
 
However, another possibility is that your spouse may need care. If he or she needed full-time support, would you be able to hire in-home help? Or would you have to quit working to provide the care and assistance? And how would that impact your finances? Again, your desire to work may be in conflict with conditions beyond your control.

Job Loss
 
A recent Transamerica study found that 30 percent of retirees stopped working earlier than they would have liked. A majority—two-thirds—quit because of employment reasons, primarily job loss.6
 
Employment conditions can change quickly. Just because your job is secure today doesn’t mean it will be in the future. Working late into life may be the right decision, but be sure to have backup strategies in the event your job is eliminated.
 
Ready to explore alternatives and backup plans? Let’s discuss it. Contact us today at Senior Care Alliance to start the conversation. We welcome the chance to help you analyze your needs and develop a strategy.
 

1. https://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx
2. http://www.bankrate.com/finance/consumer-index/money-pulse-0916.aspx
3. http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp
4. http://www.cdc.gov/nchs/fastats/disability.htm
5. https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
6. https://www.transamericacenter.org/docs/default-source/retirees-survey/retirees_survey_2015_report.pdf

 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18087 – 2018/10/1

​https://www.kiplinger.com/article/retirement/T007-C032-S014-3-spending-strategies-for-your-retirement.html

If you’re worried about having enough money to fund your retirement, you’re not alone. According to the 2018 version of Gallup’s annual survey about Americans’ biggest financial worries, retirement topped the list for the 16th year in a row. Nearly two-thirds of respondents said they were concerned about not having enough money for retirement.

Of course, having enough money is only half of the equation. Even if you save a significant amount for retirement, you still have to manage your spending throughout retirement to make sure your funds last. Excessive spending can quickly deplete even the most substantial nest egg.
That’s why it’s so important for retirees to have a written spending plan. A spending plan serves as a budget and also as a guide for distributions from your retirement accounts. You can check your spending against the plan at any time to see if you are on track or if you have veered off course.
It’s no easy task, though, to develop such a spending plan. You can’t predict the future. You may not know what your spending needs will be as you get older. How do you develop a spending strategy when so many of the variables are unknown?

There are a few different approaches you can take to planning your retirement spending. Below are three strategies commonly used. Base your spending plan on your unique needs and objectives. The important thing is to have a plan that works for you and to follow that plan so you can protect your retirement assets.

Level Spending

Perhaps the simplest approach is to assume a level spending amount throughout your retirement. You might base this amount off your current spending, or you could base it off a percentage of your pre-retirement income. The advantage of assuming a flat spending amount throughout retirement is that it makes it fairly easy to determine whether you’ve accumulated enough assets.

However, there are some issues with assuming a flat spending amount. One is that a flat spending plan may not account for unpredictable expenses that could pop up in retirement, such as home repairs, medical costs or even the occasional vacation. A flat spending plan also doesn’t account for inflation, which could have a sizable impact on your expenses over the long term. Although a flat spending plan may be simple, it may not be the most accurate approach.

Increased Spending

A second approach is to assume your spending needs will increase gradually from year to year throughout your retirement. For example, you might factor your expenses to increase at the same rate as inflation. Or you could build in greater increases in spending in your later years to account for long-term care needs and health care costs.

A plan that incorporates increasing expenses can be helpful, because it accounts for inflation and the possibility that you’ll have increased health care needs as you advance in age. However, you may want to enjoy the early years of retirement, when you are healthy enough to travel and pursue hobbies and other activities. If so, you may not like the idea of reducing your spending in the early years so you can spend more in your later years.

Dynamic Spending

One intriguing approach is to vary your spending from month to month or year to year. For example, if you plan on traveling in the warmer months of the year, you might assume your spending will increase in those months. During the fall and winter, though, you may opt to live on a much tighter budget.

A dynamic spending plan could have behavioral benefits. If you give yourself certain months or periods of time in which you’re allowed to spend more money on fun activities, you might have less incentive to go over budget during other times.

Of course, the tricky part of a dynamic spending plan is that you have to stick to the budget. If you don’t stay under budget during the lean months, you won’t be able to afford the periods of time when you are scheduled to spend more money on vacations or other fun activities. If you don’t have that kind of financial discipline, a dynamic spending plan may not be the best option for you.

The Bottom Line

Your spending plan and budget can make or break your retirement lifestyle. Spend too much early on, you may not have enough to cover inflation or rising health care expenses. At the same time, you want to enjoy the lifestyle you and your spouse envision for your golden years.
Discuss with your spouse the goals you have for retirement and write them down. Then, discuss the timeframe in which you want to achieve them. Cruise at the beginning of your retirement? Month-long European vacation when you’re 75? By planning your budget around the big expenses now, you will have room to plan for any surprises in retirement.

​Estate planning is a critical part of any financial strategy, but unfortunately it’s something that many people skip. An estate plan helps you distribute your assets to loved ones after you pass away. It also helps you protect your family and leave a legacy.
 
Contrary to popular believe, an estate plan isn’t just for people who have accumulated vast wealth. Even those with a modest estate should think about what will happen with their assets after their death. Before you develop your plan, though, you should think about what kind of goals you want to accomplish. Below are a few objectives you may want to incorporate into your legacy plan:

Providing protection for your loved ones.
 
Perhaps the most important objective any person can have with estate planning is providing support and protection for loved ones. That’s especially true if your spouse and children rely on you for financial support.
 
You’ll likely want to start by deciding who should receive assets. If you have a spouse, you may want to leave the bulk of your estate to him or her. You also may want to leave assets for children, grandchildren, extended family or even a favorite charity.
 
After you decide who gets what, you’ll then want to consider how best to distribute the funds. For example, you may want to use a trust so you can minimize the impact of probate and exercise more control over the distribution of your assets. You might also consider increasing your life insurance coverage to maximize how much you can leave behind.
 
One of the best ways to figure out what to leave to whom, and how to leave it to them, is to create a vision. Write down what you would like to see happen with your assets after you pass away, and then create a plan to make sure your vision becomes a reality.

Managing estate costs and risks.
 
If you’re not careful in your planning, you might jeopardize your estate. Even if you’re not wealthy enough to face estate taxes, there are still threats that could drain your assets. One of those is probate. This process can tie up asset distribution. On top of that, it can also come with large administrative and legal fees.
 
Another potential risk to your legacy is medical debt. End-of-life medical treatment and long-term care can be expensive. And if you haven’t prepared for these costs, then your family may be forced to pay for them from your estate. Supplemental insurance can cover the costs not paid by Medicare, and long-term care insurance can also be a valuable tool to protect against this risk.

Planning for incapacitation.
 
While it’s not pleasant to think about, there is a chance you’ll become incapacitated before you die. Usually a result of conditions like strokes or diseases such as Parkinson’s or Alzheimer’s, becoming incapacitated means that in the final days, weeks or even months before your death, you’ll be unable to communicate your medical and financial wishes to your family.
 
If you haven’t planned for this, your family may make decisions for you that you wouldn’t have otherwise made. But with tools such as a living trust, a power of attorney or a living will, you can minimize the financial impact of incapacitation. These are all fairly straightforward documents, and a financial professional can help you decide which ones are best for you.
 
Ready to develop your legacy plan? Let’s talk about it. Contact us at Senior Care Alliance for more information. We welcome the chance to help you analyze any remaining questions and develop a strategy. Let’s start the conversation today.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18086 – 2018/10/1

​Every financial strategy needs to be reviewed from time to time. Life can change quickly, and when it does, it’s important to make sure your financial strategy is still appropriate for your needs and goals. For many people, financial review often means analyzing investments, budgets and other documents.
 
You may not think that life insurance needs to be reviewed. After all, it’s a fairly straightforward tool. You pay a regular premium, and, in exchange, the insurer provides your beneficiaries with a tax-free payout upon your death.
 
The truth, though, is that if your life changes in a significant way, your coverage may no longer be appropriate, especially if you bought your policy years ago. Below are a few questions to ask about your life and your objectives. If you answer yes to any of these questions, it may be time to sit down with a financial professional.

Has the number of people in your household changed?
 
Are you the main financial provider in your household? Did you purchase life insurance to protect your family in case you pass away? That’s a common reason for purchasing life insurance. If you pass away, your spouse, children and other dependents could face a wide range of financial challenges, including debt and loss of income. They may have to put off major life goals such as college or retirement.
 
Your life insurance coverage should change as your number of dependents changes. If you have additional children, you likely need more protection. Similarly, if your kids grow up and move out of your house, you may not need as much coverage.
 
Marriage and divorce can also impact your need for life insurance. If you get married, you may need to review your coverage, especially with regard to your beneficiary designations. If your spouse isn’t named as a beneficiary, he or she will not receive the death benefit. People often get divorced and remarried but forget to change their beneficiary designation. The risk is that your former spouse could end up receiving the life insurance proceeds.

Have you purchased a home, business or other sizable asset? Did you take out a loan to do so?
 
A major purchase is another event that may trigger a life insurance review, especially if you took out a loan to make the purchase. The classic example is a new home. Assume you purchase a home and take on a significant, long-term mortgage. Many lenders require a borrower to also carry life insurance to cover the balance. Even if the lender doesn’t require insurance, however, it may be a wise idea. The insurance proceeds could help your spouse or children cover the balance if you pass away.
 
You also may want to consider life insurance if you take out a loan for any other major purchase. Think about whether your dependents could cover the loan payments without your income. Also consider whether they could easily sell the asset to pay down the loan. If the answer to both of these questions is no, then more life insurance may be a smart strategy.

Have you made a career change?
 
Have you changed employers, started a business or maybe even received a promotion? If so, now may be the time to review your life insurance. Many workers rely on employer life insurance benefits for coverage. If you changed jobs, however, it’s possible that your new employer doesn’t offer the same level of protection.
 
Your new role may have also come with a raise. If you’re earning more money, your family stands to lose a greater amount of income when you pass away. That means they may need more insurance coverage to fill the gap. Additional protection may be necessary. The only way to truly know whether you have an appropriate amount is by conducting a detailed needs analysis with your financial professional.
 
Is it time to review your life insurance strategy? Contact us today at Senior Care Alliance. We can help you analyze your needs and adjust your plan. Let’s connect soon and start the conversation.
 

Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17962 – 2018/9/4

​For nearly 80 years, Social Security has provided a valuable financial safety net for seniors and other vulnerable Americans. The program was created in 1935 when President Franklin D. Roosevelt signed the Social Security Act.1
 
The first Social Security benefit was paid out to a Cleveland motorman later that year. He collected a lump sum of 17 cents.1 From 1937 to 1940, the Social Security Administration (SSA) made lump-sum benefit payments before switching to guaranteed* monthly lifetime payments for all retirees age 65 and older. The rules have changed gradually over the years. However, Social Security still operates largely the same way it did in the beginning. Below are common questions and answers about Social Security and the role it may play in your retirement:

Social Security Benefits
 
As mentioned, Social Security operates as a financial safety net for millions of Americans. As of December 2017 the program paid benefits to more than 45 million retirees and dependents, over 10 million disabled Americans and dependents, as well as 6 million survivors. Retiree payments account for 72 percent of benefits; disabled workers account for 16 percent, and the remainder is paid to survivors.2
 
More than 90 percent of those age 65 and older rely on Social Security benefits for some portion of their income.2 In fact, for many seniors, Social Security makes up a significant amount of their total cash flow. Among retirement benefit recipients, half of married couples and 71 percent of singles say that Social Security represents more than half of their income.2

Filing for Benefits
 
You can file for Social Security retirement benefits when you turn 62. However, your benefit is reduced if you file before your full retirement age (FRA), which lands between the 66th and 67th birthdays for most people. In fact, your benefit could be reduced as much as 35 percent.3
 
You can avoid a reduction by waiting until your FRA to file, but you don’t have to file at that time. In fact, you could significantly increase your benefit amount by delaying your filing. Social Security offers an 8 percent benefit credit for every year that you wait after your FRA. If your FRA is 66 and you wait until age 70 to file, that’s a total permanent benefit increase of 32 percent.4

Social Security Solvency
 
There’s been plenty of news about Social Security’s funding issues and solvency problems. It’s true that Social Security faces serious financial challenges, but the program won’t disappear anytime soon. In 2020 the SSA will start paying out more in benefits each year than it collects in payroll taxes. That means it will have to dip into the trust fund, which is projected to be depleted by 2034.5
 
Even after the trust fund is gone, however, the program will continue to collect taxes to fund benefits. Experts estimate that with benefit cuts, perhaps as much as 21 percent, the program could remain solvent through 2090.5
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at Senior Care Alliance. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.



1https://www.ssa.gov/history/briefhistory3.html
2https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
3https://www.ssa.gov/planners/retire/agereduction.html
4https://www.ssa.gov/planners/retire/1943-delay.html
5https://www.fool.com/retirement/2017/05/22/a-big-social-security-change-is-coming-in-2020-and.aspx
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
17846 – 2018/7/30

 
According to a recent Fidelity study, health care could be a major expense for many retirees. The study found that the average 65-year-old couple can expect to spend nearly $280,000 on out-of-pocket health care costs in retirement.1 Think that estimate sounds high? Consider that you will likely have to pay for things like premiums, copays, deductibles and more.
 
Many retirees assume that Medicare will pay for most or all of their health care costs. However, that’s usually not the case. Your Medicare coverage depends on your specific options. The more robust your coverage, the higher your premiums are likely to be. And some treatments, such as long-term care and rehabilitation, aren’t covered by Medicare at all.
 
If you haven’t planned for your health care needs in retirement, now may be the time to do so. Fortunately, there are steps you can take to minimize your risk exposure and perhaps reduce your out-of-pocket costs. Below are a few tips to help you get started:

Be proactive about your health.
 
They say prevention is the best medicine, and that’s certainly true in retirement. If you’re approaching retirement, now may be a good time to consult with your physician about your current health and what you can do to minimize risk. For instance, perhaps you could improve your diet or exercise routine. Maybe you should undergo that long-delayed procedure now so you won’t have to deal with it in retirement. Think about what you can do to improve your health.
 
You can also be more proactive when it comes to treatments and services. Once you’re on Medicare, don’t be afraid to ask which tests and procedures are necessary and how they relate to your symptoms. After all, you’ll likely have to pay at least something for much of your care, in the form of either copays or deductibles. Don’t hesitate to ask which services are truly necessary and which aren’t.

Choose the right Medicare coverage for your needs.

Medicare coverage is offered in a variety of different programs known as “parts.” Part A is standard for every retiree and is free. It covers hospitalizations and inpatient services. Part B covers doctor visits and outpatient care. Part D covers prescription drugs.
 
Part C is an innovative program also known as Medicare Advantage. It allows private insurers to offer coverage that includes traditional Medicare protection but also enhanced coverage. These policies may offer flexibility with deductibles or premiums and often provide protection for services not traditionally covered by Medicare, such as dental visits or eye care.
 
Take time to choose the Medicare package that best fits your needs. While you can’t predict your future health, you can make an educated decision based on your medical history. If you have a chronic condition or need regular care, robust coverage may be best for you.

Contribute to a health savings account (HSA).
 
You’ll likely have some level of out-of-pocket medical expenses that you’ll need to fund with your retirement savings. However, you can use a unique tool to save for those costs on a tax-advantaged basis.
 
An HSA allows you to make tax-deductible contributions and then increase your funds on a tax-deferred basis. If you use the money for qualified health care costs, you can take tax-free distributions. That means you can start saving today to pay for your medical expenses in the future, and you can do so in a tax-favored manner.
 
Ready to plan your health care strategy? Let’s talk about it. Contact us today at Senior Care Alliance. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17859 – 2018/7/31

​For many retirees, Social Security is a major piece of the income puzzle. In fact, it’s the primary source of guaranteed lifetime income for a large number of retired people. Your Social Security benefit may provide a lifetime safety net to help you cover retirement’s most challenging expenses.
 
It’s important, though, to have other income sources outside of Social Security. Too many retirees make the mistake of relying primarily on their Social Security benefit. More than 60 percent of retirees rely on Social Security for over half their income. Social Security provides more than 90 percent of income for a third of those individuals.1
 
Although Social Security is a valuable retirement resource, it likely won’t provide enough income to fund your lifestyle. For many workers, Social Security replaces only a third to half of their preretirement earnings. Depending on your plans for retirement, you may need a substantial amount of income to supplement your Social Security benefit.